Leadership

Leadership is one of the most important aspects of any organization, yet is
also one of the most difficult terms to define. Leadership means different
things to different people, and it becomes obvious that everyone seems to
have a different definition of leadership based on the sheer number of books
written on the topic. While we can't give a complete summary of all the
different theories, we will detail below some of the greatest qualities we
have found in some of the greatest leaders.

Lead by Example: If you are going to talk the talk, you
better walk the walk. If not, you don't have this necessary trait that
establishes credibility and trust between yourself and your team. Anyone can
lead in a team, from the President to the janitor, and much of this ability
is dependent on whether or not people see substance in your words.

Inspire Shared Vision: Once you know what you want to do,
you need to recruit a team that is on the same wavelength. Some of the
easiest to relate examples come from sports, and we will use basketball as
an example. The general goal is to get the ball in the opponent's hoop, and
without the ability to call plays, a team captain can rarely coordinate a
complex play that allows the ball to get past the opponent team and into the
hoop. By inspiring a shared vision, you can encourage your team to
coordinate their actions towards a common goal - getting the ball in the
hoop.

Question the Status Quo: All entrepreneurs notice something
they don't like about the way things are currently done. There is a failure
in the current system that results in some form of injustice that motivates
the entrepreneur to take action. As an example, instead of simply walking by
someone who is homeless, ask why that person is homeless. This is the
inspiration that leads many to start their organization, and many
entrepreneurs continue working until the status quo is changed.

Enable others to Act: Once people believe in you through
leading by example, inspiring a shared vision, and questioning the status
quo, you are now in the position to enable and encourage others to act. Many
times people feel they need to be given permission to do amazing things, and
by all means encourage them and support them.

Encourage the Heart: Changing the world doesn't occur
overnight, and you need to be steadfast in your mission, passion, and
dedication in order to see it through to success. By standing firm, you set
the tone for your team and if you notice people becoming exhausted,
frustrated, or disenfranchised, it is your goal to step in and raise their
spirits. Most times the most difficult moments of an organization are right
at the cusp of breaking through; you need to be there to push through this
rough patch to get through to the other side.

You Can't Please Everyone: Being responsible means
sometimes stepping on some toes. Not everyone will see eye to eye, but as
long as you stick strong to your values and are resolute in your mission,
the problems will prove themselves to be short term and sticking with your
conviction will show that you say what you mean and you aren't going to
waiver when tough decisions need to be made.

Trust Your Gut: Experts often possess more data than
judgment, and elites can often lose touch with the real world. Your gut
reaction is usually your best indicator, and to question it is to put in
doubt your intuition. While it is good to question your intuition sometimes,
and not take things at face value, to incessantly doubt yourself results in
a loss of confidence that can hinder your effectiveness.

Challenge the Pros: If you have an amazing idea that could
revolutionize the way an industry or field works, don't be afraid to take on
the big boys. Many times the leaders in their field become complacent and
stop focusing on innovating, providing great customer service, etc. This
provides ample opportunity to become the new leader in the field as long as
you act quickly and without fear.

Never neglect details: The distinction between good and
great is in the details. Apple provides an amazing consumer experience
because they think about all of the details. From the product packaging to
the support for a dysfunctional product, Apple effectively focuses on all of
the details to provide a great consumer expeirence.

Act first, ask forgiveness later: You don't know what you
can get away with until you try. It's much easier to ask for forgiveness
than it is to get permission. Too often people are quick to say no to an
idea before thinking through the possibilities of yes.

Look below the surface: To find the source of a problem,
you may have to dig awhile. If a school in the middle of a city is failing,
you must be willing to look beyond teachers, books, and other obvious
things. What if the city is right in the middle of a gang turf war that
involves a lot of drugs and guns? There may be many factors that contribute
to the current problem you want to solve, and as such, you must be willing
to ask a lot of questions to get the full picture.

Leadership is situational: In some scenarios, you will need
to be the leader who charges out front. In others, you will need to be the
one who slows things down and questions the process to make sure everything
is occurring for the right reasons. There isn't a sinlge best style, because
it's all contextual. Don't fit any stereotypes, nor should you chase the
latest management fads. You can learn from them and incorporate where they
fit, but they should never become the 'right' way to lead.

Always be optimistic: There is nothing as simple to
incorporate that produces some amazing morale boosts. Being optimistic
doesn't mean operating without caution, but rather a dead certainty that
what you are doing has value and will be worthwhile. If you allow yourself
to doubt your ability (or your team's abilities), then your team will begin
to doubt your abilities, which will almost certainly lead to the negative
outcome you were concerned with.

Pick the right people: Every organization is about people,
and as such, they are your most valuable asset. The organizations that do
the best over the longterm care about their team and making sure their
employees fit. When hiring employees, look for individuals who are
intelligent and express judgment, and most critically, a capacity to see
around corners. Also look for loyalty, integrity, a high energy drive, a
balanced ego, and the drive to get things done. All of these things combined
will create a team that is capable, passionate, and results oriented.

Fail early, fail often: If you don't fail, you aren't
taking enough risks. Risks are what allow an organization to jump to the
front of the pack, but when you act too conservatively and are afraid to
make mistakes, you will often miss important trends and key innovations that
will make your organization more efficient and effective.

Seek mentors: One of the most underappreciated yet most
rewarding ways to learn to lead is to seek a leader who inspires you as a
mentor. It can be someone local to your community or the head of a major
corporation. Set up monthly or weekly lunches with these people and pick
their brains. Smart people learn from their mistakes, wise people learn from
the mistakes of others.

Finally, a quotation from one of my favorite leaders, Colin Powell. Mr.
Powell says,"Organization
doesn't really accomplish anything. Plans don't accomplish anything, either.
Theories of management don't much matter. Endeavors succeed or fail because
of the people involved. Only by attracting the best people will you
accomplish great deeds."

Week 1 - Introduction

Overview:

This course is designed to act as a primer to social entrepreneurship as
an academic field as well as a career. The structure of the class is to
provide a generous amount of information on the background of the field as
well as to provide a set of tools and training to jumpstart your own social
venture. The first half will generally be dedicated to the background, and
the second half to the tools and information you need for practical
applications of this information.

The goal of the first class is to act as a way for the class to become
introduced to each other and to start becoming comfortable working together
through a couple of ice breakers that are designed to force teams to work
together. In our experience, each class is 2 hours long, and the course has
been designed around this experience. Please feel free to modify, change,
and/or adapt all of these instructions and activities to fit your own needs.

Logistics:

Introductions - Go around the class introducing each
other. An introduction should include who you are, where you're from, an
interesting fact about you, and why you are taking this course. (10
min.)

Logistics - Spend some time discussing the course syllabus,
which should include an overview of the course, class expectations, and
any other important or relevant information to the course. (10 min.)

Ice Breakers - There are several ice breakers to play with
the intention of getting people to interact with one another right away.
While uncomfortable, it breaks down barriers quickly. The ice breaker we
played next to jumpstart the creative process wasMake
a Dog. Each group must determine how they are going to make a dog given
major time constraints and a lack of resources. The goal is for each
individual to learn from each other or individuals in different groups.
Also, the goal is to help foster group communication and to have fun.
(10 min.)

The X-Y Negotiation Game - Negotiating is one of the most
misunderstood but arguably the most important tools to have in life.
Every exchange involves some level of negotiation, from determining what
clothes to wear in the morning to convincing a friend to see your point
of view or do something with you. The purpose of this activity is to
draw out the lessons discussed in our Negotiations article after playing
the The X-Y Negotiation
Game. (45 min.)

Questions and Answers - The goal of this activity is to
figure out what people already know about social entrepreneurship. Ask
questions regarding all the different sectors (for profit, non profit,
foundations, entrepreneurship, social entrepreneurship) to gauge how
much your class already knows and how the class information should be
tailored. This should be more exploratory than anything else, asking
questions such as, "When you think of a non profit, what comes to mind?"
Responses such as, 'slow, outdated, mission oriented, humanitarian, etc'
are expected. (15 min).

I Love My Neighbor Who... - This ice breaker acts as a way
to move around and have some fun after spending quite a bit of time
sitting down and thinking. The goal of this ice breaker is to have fun
learning about the different things you have in common with other people
in the class. If all of the previous activities ended up being shorter
than or longer than expected, you can use this activity to fill in the
necessary time or cut it out entirely if there is not enough time. See
attached. (20 min).

Wrap Up - The last ten minutes of class should be used to
wrap up and discuss assignments to be completed for next week. The
assignments are listed below under 'Exercises'. (10 min).

Exercises:

Sign up for note-taking days. Each student must
take notes and post them to the course website/wiki.

Write up your individual bio. This will help
everyone in the class get to know one another.

In pairs, research 6 socially entrepreneurial organizations.
This activity encourages people to explore social entrepreneurship
before we discuss it. The research should result in a 2 paragraph write
up that includes what they do and why you find them interesting. Also,
make sure to link to the original source where you found the
information.

Prepare a 2 minute presentation of an organization.
Following up with the previous assignment, each student must prepare a
quick presentation to share with the class. No two students should cover
the same organization.

Readings:

There are no readings for next week.

Next Week:

Next week will be a discussion based overview of all the most important
concepts in social entrepreneurship to date. Topics ranging from 'social
philanthropy' and 'social enterprises' to 'greenwashing' and 'triple bottom
line economics'. This crash course should act as the foundation for future
conversations and act as a reference point in all future discussions.

Week 2 - Definitions

Overview:

Social entrepreneurship is a new and rapidly changing field. Much of
understanding what social entrepreneurship is lies in defining the context
and situation around social entrepreneurship. For example, this class will
talk about different organizational structures and how a social enterprise
fits within each of these categories. We will also explore many of the
different terms that have been used to describe theories, methodologies, and
practices currently being used. A lot of examples will be used, so a
background in the top 20 social enterprises is useful, plus a general
background of different businesses and non profits to provide as contrast is
helpful.

The objective of this class session is to provide a working language to
describe different things we see in the realm of social entrepreneurship as
well as provide the tools necessary to compare and contrast organizations.
By having a working knowledge, we can evaluate best practices and decide
what works and won't work for one organization that might work for another
organization. This is an introductory class to an ongoing process that
requires continual refinement and an open mind. As a disclaimer, we are not
claiming to know everything in this field and what is true as an example
today may not be true tomorrow. This field is rapidly changing, and even
though we could be wrong tomorrow, the potential and aspirations of this
field keep us excited and wanting to learn more to refine our thought
process.

Logistics:

Introductions - Go around the class introducing each other
again. This time say your name and one interesting thing that happened
to you this week. (10 min)

Definition Discussion - The six main topics are For Profit,
Nonprofit, Organizational Structures, Foundations, Sustainability,
Corporate Social Responsibility, and finally Social Entrepreneurship.
Below are the key points to draw out for each and the reference sites
used to provide background information. (60 min)

For Profit: Most of the organizations we interact
with day to day are for profit enterprises. From Walmart and Best Buy to
CNN and Microsoft, we are surrounded by organizations that are
structured as for profits. The signature characteristic of a for profit
enterprise, regardless of it's structure, is to maximize shareholder
value of whoever owns the organization. The distinction of structure
comes into play when determining who are the shareholders and how
profits as well as liabilities lie. In a traditional C corporation (like
Walmart), the corporation itself is responsible for all liabilities (not
the shareholders) and pays taxes as a single entity. In contrast, a
limited liability corporation (LLC) is responsible for all liabilities
but can elect for all taxes to flow through to the shareholders. Further
discussion can be made regarding the structures and contrasts.
Source

Nonprofit: The goal of a nonprofit is to maximize
the impact of the organization to fulfill its mission. The key
distinction from a for profit enterprise, though, is that there is a
non-distribution constraint. What this means is that if the nonprofit
makes a profit, it cannot distribute those profits; they must be used
within the nonprofit to further the mission. Nonprofits are also unique
in that they don't coerce participation and they exist without simple
and clear lines of ownership and accountability. Further discussion into
examples of nonprofits, from health care and education to think tanks
and politics, would be useful.
Source

Organizational Structures: For profits and
nonprofits are two examples of organizational structures, and to
introduce the area of social entrepreneurship, we must dive a little
deeper into the different organizational structures that exist for
'nonprofit' status (the 501(c) status). The distinction 501(c) generally
means that the institution is tax exempt. To maintain tax exemption,
they must 1) disclose all tax filings and 2) follow the nondistribution
constraint. There are 28 different 501(c) distinctions, and the one we
will discuss in most detail is the 501(c)3 distinction - traditional
nonprofits. An example of one of the distinctions is 501(c)4 versus
501(c)3. The 501(c)4 can lobby congress, but as such can't claim tax
deductible. The 501(c)3 cannot lobby congress but can claim tax
deductibility. To add some interactivity to the discussion, one can ask
questions regarding how much money is given to nonprofits and what is
the breakdown for that giving, with the answers shown below:
Source

Total Giving: $ 300 billion

Religion, $102.32 billion, 33.4%

Education, $43.32 billion, 12.1%

Human services, $29.64 billion, 9.7%

Health, $23.15 billion, 7.6%

Public-Society benefit (United Way etc), $22.65 billion, 7.4%

Arts, culture and humanities, $13.67 billion, 4.5%

International affairs, $13.22 billion, 4.3%

Environment and animals, $6.96 billion, 2.3%

Foundations, $27.73 billion, 9.1%

Unallocated giving, $23.67, 7.7%

Sustainability: This is a hot topic in more than
one academic circle, so it is important to clarify definitions and
discuss which one's apply to social entrepreneurship. The different
types of sustainability are environmental, organizational, financial,
and structural. The ones pertaining to nonprofits are organizational and
financial. Organizational sustainability entails being able to maintain
the organization through turnover and changes in leadership. Financial
sustainability is especially important to social enterprises because the
traditional nonprofit has mostly used donations and foundations as
sources of revenue while new developments have been demanding that these
enterprises start developing internal revenue models that allow an
organization to continue even if they lose a particular grant or
foundation donation. Much of the innovation in financial sustainability
comes from thinking up innovative revenue models. For example:
Source

Tiered pricing - Aravind Eye Care has 70% of its surgeries performed
for free or below cost and 30% above. The 30% above cost pays for the
rest of the surgeries.

Dual Model - Zoos are sometimes set up as nonprofits with their gift
shop providing much of the revenue needed to cover operating costs.

Diversification - Upwardly global receives government funding,
program revenue, and donations to support its mission.

Foundations: Foundations are divided into two types
- private foundations and community foundations. Private foundations are
the types that one normally encounters with the Ford Foundation and the
Bill and Melinda Gates Foundation. Community foundations focus on the
needs of a given community and examples include the Cleveland Foundation
and the Silicon Valley Community Foundation. Private foundations are
usually set up to fulfill the mission of the founder, and are set up so
that their operating budget consists of what the endowment makes in
interest a year (usually 5%). The result is that private foundations
usually exist in perpetuity. This contrasts with community foundations
because they must collect at least 10% of their annual expenses in
donations each year to remain tax exempt (private foundations do not).
This results in the community being much more involved with the
foundation, determining which issues it focuses on and how it allocates
the funds to serve the community. As a final point of interest, there
are also two types of private foundations - "operating" foundations and
"grand-making" foundations. Operating foundations, like the Wikimedia
Foundation, use their endowment to achieve their goals directly.
Grant-making foundations, like the Rockefeller Foundation, use their
endowment to make grants to other organizations, which indirectly carry
out the goals of the foundation. Operating foundations have preferential
tax treatment in a few areas, including allowing individual donors to
contribute more of their income and allowing grant-making foundation
contributions to count towards the 5% minimum distribution requirement.
Source

Corporate Social Responsibility: Corporate social
responsibility is the idea that corporations have to maximize value not
only for their shareholders (those who own stock, for example), but for
all stakeholders (employees, customers, communities, and shareholders).
Proponents say this is good for business because it takes a long term
approach to maximizing value and generating goodwill instead of only
short-term profits. Opponents say that it is nothing more than publicity
stunts and that their only responsibility is to maximize shareholder
value. There are quite a few different areas of study occurring within
this sector, which include ways of measuring environmental social impact
(triple bottom line economics) to how a corporation should determine its
socially responsible initiatives. For example, some corporations only do
"sustainability" initiatives when they reduce their internal costs (such
as switching to fluorescent from incandescent lights) while others take
the step a bit further. Others, who are using it as a publicity stunt,
will sell a bottle of water and provide a donation to a nonprofit in a
developing nation; the problem occurs when they charge 20 cents more for
the bottle of water and donate only 5 cents to the nonprofit (which is
an example of greenwashing).
Source

Social Entrepreneurship: Social entrepreneurship,
in its highest aspirations, tries to combine the best of all these
terms. Creating an organization that has a nonprofit organizational
structure but sells products for a fee to support it's mission can be
considered socially entrepreneurial. Being a for profit organization
that has a non profit arm to sustainably fulfill a social good is an
example of social entrepreneurship. Bring up examples of Kiva, Ashoka,
Benetech, and the Kaiser Family Foundation are great.
Source

Organization Presentations - After the discussion of terms
and examples, each student is now asked to give their presentation on a
social enterprise. After the presentation, ask the class to discuss
which aspects of the previous discussion were incorporated into the
presentation. (20 min)

Need Finding - Bring the discussion full circle and discuss
how need finding is very important to developing a social enterprise.
Having a vision for the future depends on finding something you don't
like about the status quo and being willing to work hard to change the
situation so that you can create a new status quo. (10 min).

Motivation - If you are going to decide on a specific need,
you need to be passionate and be willing to work day and night to fill
that need. Starting with the trip leaders, discuss why you are
interested in social entrepreneurship and what motivated you to take
this class. What's your story? (10 min).

Conclusion - Wrap up with the in class assignment as well
as the out of class assignment (10 min).

Exercises:

What do you want out of this class? Before leaving
class, write down on a piece of paper your goals for this class. What
you want to get out of it and how we can tailor the class to fit your
particular needs.

Find 7 needs. Keep an eye out on the world around
you. Find 7 'problems' in your day to day life that you would like to
change. Can be anything as simple as poor food choice to homelessness.

Readings:

There are no readings for next week.

Next Week:

Next week will be a discussion of need finding and brainstorming! Bring
your creativity caps and be ready to think outside the box. We will have a
lot of fun and utilize IDEO's method of brainstorming to find solutions for
everyday problems. A more hands on class and thought exercise that should be
repeated regularly.

Week 3 - Brainstorming Needs & Vision

Overview:

Great brainstorming is one of the most powerful and one of the most
misunderstood methods in the in the innovators toolbox. It‰Ûªs a special
kind of collaboration with specific rules of behavior designed to maximize
idea generation. While many say they know how to brainstorm, few do it
really well. In some ways, brainstorming is like volleyball. If you know the
rules, you might be able to survive a social game at the neighborhood
picnic. But this is a far cry from the kind of volleyball you watch on TV.
No matter what level you are at, you can always up your game. As such, the
focus of this class session is to construct a great brainstorming exercise
based around the needs found by the class participants.

Logistics:

Introductions - Go around the class introducing each other
again. This time say one of your favorite activities to do when you have
free time. (10 min).

Introduction to Brainstorming - Before diving into the main
class activity, watch the clip 'Inside IDEO' on youtube (parts
1,
2, &
3). Discuss some of the brainstorming best practices that they
performed. (30 min).

Needs Finding - Spend some time writing up the needs of the
class on a whiteboard/chalkboard. Next have each person go and put up a
post-it note next to their two favorite ideas. After that has been done,
introduce the class to
these brainstorming exercises. Make sure everyone is on the same
page and then divide the class into groups of 3-4 people and give each
of them some paper and markers and one of the ideas that received the
most post-its. Then have each team break up and do the brainstorming
exercise to come up with potential solutions to the problem (all the way
through the 'Ideation' phase). (30 min).

Switch It Up - Reorganize the teams so that everyone
changes teams except for one individual. That one individual then
becomes the 'project leader' and has to explain the ideas to the new
team and then the team has to come up with a plan for implementation and
evaluation for a solution to the problem. Encourage wild ideas and don't
focus on being super-practical. (30 min).

Evaluation - All of the class comes together and then
explains to the rest of the class in a 3-5 minute pitch what their
problem is, how their going to fix it, and how they plan to evaluate it.
(15 min).

Wrap Up - Talk through the brainstorming process and tease
out some lessons regarding brainstorming. Be sure to follow the rules
highlighted on the brainstorming post, and encourage the students to
test out this process anytime they need to come up with, decide, and
evaluate a decision. Finally, assign the reading for next week.

Exercises:

No exercises for next week.

Readings:

Case Study. Select and read a case study that
discusses mission and vision. One we recommend is based on the
organization 'March of Dimes.'

Prepare two discussion questions. Prepare to be
cold-called in class... :)

Next Week:

Next week we will introduce mission/vision and explain its importance in
social enterprises in much greater detail. We will introduce the analysis of
case studies to the class and explain their importance, especially in the
young field of social entrepreneurship.

Week 4 - Mission, Vision, & Theory of Change

Overview:

The inspiration for every great social enterprise is a solid mission - a
reason for being. The vision is the great big, almost certainly unattainable
goal for your organization. The theory of change is the planned process for
achieving your mission. Overall, this is the lifeblood of any organization -
it says why it exists, how it will solve the problem it recognizes, and why
it is important for this problem to be solved.

Vision - A single sentence that describes how the world will look
after this problem is solved.

Theory of Change - Your theory of change is a tool that "describes a
process of planned social change, from the assumptions that guide its
design to the long-term goals it seeks to achieve.Ó [1]

Case Study - Choose your favorite nonprofits, for-profits,
foundations, and/or social enterprises and analyze their vision,
mission, and theory of change. It might be hard to find organizations
with a theory of change, and if that's the case, use the classroom as a
means to create possible theories of change for these organizations. [60
min]. Use the last week's reading to jump-start the discussion on
mission statements.

Wrap Up - Spend some time discussing what are the key
criteria necessary for a vision, mission, and theory of change. Do they
need to be actionable? Should they be time bound? Is there a size when
the mission is too big? Etc. [30 min].

Exercises:

No exercises for next week.

Readings:

Case Study.

Next Week:

Next week we will introduce mission/vision and explain its importance in
social enterprises in much greater detail. We will introduce the analysis of
case studies to the class and explain their importance, especially in the
young field of social entrepreneurship.

Notes:

[1] Ford Foundation - Page online.

Week 5 - Metrics & Social Return on Investment

Overview:

"If you can't measure it, you can't manage it." This common
piece of advice from the business world is starting to take hold in the
nonprofit/social-e sector, and for good reason. Many nonprofits in the past
have existed without knowing or sometimes even trying to quantify the impact
they create through their programs. The tide is turning, though, because
more foundations and other sources of funding are developing internal
metrics for evaluating their investments. This, in turn, is being quickly
adopted by social enterprises because it helps them understand what's
working, where they need to improve, and how to prove that they are indeed
solving the problem in their mission.

Logistics:

Introductory discussion of why metrics are important -
Discussion should be based on the reasons assigned from last week. Ê[20
min].

SROI and an introduction into different ways to calculate
effectiveness - Reference
this article in discussing different ways to measure social return
on investment. Explain/discuss the pro's and con's of the different
methods, and the scenarios in which one type works best compared to the
others. While a somewhat dry subject (it's mostly numbers a lot of the
time), it is very illuminating to discuss the reasons why there are so
many different ways of measuring value and how they can improve an
organization's performance [60 min].

How to implement metrics discussion - Discussion based on
how an organization can/should implement metrics, as well as looking at
examples from certain organizations on how they develop metrics. Do the
implementations differ by organization size? type? industry? If so, how
so? [20 min].

Wrap Up - Any last discussion topics should be discussed at
this point. If any major themes developed (varies by class), pull these
out and tie into the the last two classes if at all possible
(need-finding, mission, vision, and theory of change). [30 min].

Exercises:

Create a case for why a person would use a specific organization
structure and/or revenue model. The case should define the type of
structure and revenue model used, plus 3-5 reasons why its a compelling
combination.

Readings

No readings for next week. Students are advised to use whatever
authoritative sources and statistics they can find to make their case. No,
Wikipedia does not count, but if Wikipedia's sources at the bottom of the
page are good, they can be used instead.

Next Week:

Next week's class will focus on the organization structure and revenue
models available for social enterprises. Should one choose a for profit
model over a nonprofit model? This question and many others are the primary
focus of next week's class.

Week 6 - Organization Structures & Revenue Models

Overview:

There are many different organizational structures that can be utilized
and still be a successful social entrepreneur. Depending on what you want to
accomplish, how you want to accomplish it, and the operating environment,
you can effectively determine which organizational structure works best for
you to serve your ends. This class will explore different organization
structures and revenue models, with a thorough analysis of the pro's and
con's of the most popular combinations.

Logistics:

What are the different organization structures - Discussion
can start based on the assignment from last week. As an additional
resource,
this article provides an extensive overview of the different models
[20 min].

What are possible revenue models - Discussion can start
based on the assignment from last week. As an additional resource,
this article details some nonprofit revenue (fundraising) strategies
[20 min].

Discussion of combinations - The goal of this discussion
should be to explore the different ways many different organizations are
able to attain the money necessary for daily operations. Which
combinations are most common? Do they vary by industry? Are there
specific pro's or con's of one type over another? How do the strategies
impact the ability to grow an organization? [60 min]

Wrap Up - Major themes should be discussed, as well as
teasing out how organizations don't always have only one combination or
model. Hybrids exist in many instances, and many organizations change
strategies or simply diversify over time. [10 min].

Exercises:

Find one advertisement on Youtube (~60 sec) that you think does a
really good job of marketing the brand it represents and write up a
short paragraph on why you think its effective. In your paragraph, you
can discuss the target demographic, what methods were used to make the
brand appealing, what about the product was good, etc.

Readings

No readings for next week.

Next Week:

Next week's class will focus on marketing and how organizations of all
types spread the word about what they are doing and why others should listen
to their message.

Week 7 - Marketing

Overview:

Marketing is one of those dirty-words in today's society, and in many
cases, for good reason. But in its essence, marketing is about telling the
story and sharing the experience of an idea or organization. Marketing runs
in to trouble when the expectations outsize the experience and the
wording/phrasing promises more than it delivers. The key, then, is to
deliver on what you promise. This class will explore the significance of
marketing and to leverage its power for good... :)

Logistics:

What are the different types of marketing - Short
introduction to the different types of marketing. What are the important
factors that drive marketing? Who is the target? What medium is best to
reach that audience? How is social media changing the marketing
landscape and how is it currently being used?
This article acts as a good referenceÊ[20 min].

Watch the commercials selected for class and discuss the type of
marketing used - Should be based on the previous discussion and
bring up any missing points or deeper analysis into different strategies
of the different types. A good video to supplement the commercials is
from
Rory Sutherland: Life Lessons of an Ad Man [60 min].

Wrap Up - How should an organization develop its marketing
strategy? How can the success of the plan be measured? Which methods are
the most effective and easiest to implement and measure? Which methods
can be successfully employed for social enterprises versus other
organizational structures? [30 min]

Exercises:

Each student should do a reflection on the different groups of which
they are members and write up three characteristics that made one group
a good group and three characteristics that made another group less
successful at engaging its members.

Readings

No readings for next week.

Next Week:

Next week will discuss the different ways in which an organization can be
built. From brainstorming to team building, there will be a wide variety of
discussion points on how an organization grows in the early stages, and why
this is important to social entrepreneurs.

Week 8 - Organization Building

Overview:

Throughout the class thus far, the focus has been on analyzing many of
the different components necessary to a social enterprise. The focus of this
class is on analyzing the beginning stages of an organization - with a keen
eye on social enterprises - and how the organization grows. This class and
the next class - What Makes a Social Entrepreneur? - will round out the
class by tying everything together.

Logistics:

Leadership - The most important element to building an
organization. The leader sets the tone for the rest of the organization
and without strong leadership from the top, an organization is likely to
misstep or even fail in solving its problem. What are some key
characteristics of great leaders? What does a great leader need to do?
How do leaders handle failure?
This article goes into much more detail about the qualities and
styles of leadership [20 min]

Brainstorming - Brainstorming is a key component for an
organization to make decisions, think about growth strategies, come up
with solutions to problems based on its mission statement, coming up
with the mission statement, etc. This discussion should focus on the
benefits of brainstorming, and should have a mini brainstorming session
to discuss what works and doesn't work in an organization. Use
this article as a starting point for brainstorming [20 min].

Business Plans - Many people disagree about whether or not
a business plan is extremely valuable or a complete waste of time.
Dwight D. Eisenhower said it best in that "Plans are nothing; planning
is everything." This is true with business plans in that they help
develop a blueprint of what the organization ought to look like and
detail many of the assumptions, risks, and roadmap for the organization.
Discussion should focus around what a good business plan involves.
This article is a great starting point [20 min].

Team Building - At some point, an organization must grow
beyond the small team of founders to include other people. Who should
the organization pick? What are the qualities of a great team?
This article discusses what a great team looks like as well as
discusses some of the reasons why teams fail [20 min].

Partnerships - Partnerships deserve specific attention
because they are especially critical for social enterprises. Many times
there are multiple organizations acting in tangentially related ways,
and its a common practice for social entrepreneurs to leverage other
enterprises' core competencies to meet some of the organization's needs.
What are critical components to successful partnerships? How does an
organization choose potential partners?
This article provides a primer for what makes effective partnerships
[20 min].

Wrap Up - How do all of these qualities relate to the
previous classes? Any themes that can be discussed? Ê[10 min]

Exercises:

Each student should do a reflection on their personal motivations
and whether or not they would consider themselves a social entrepreneur.
Do you want to be the leader? Would you rather be the coordinator behind
the leader, managing all of the details? What motivates you to take a
leadership position? How do you lead? This assignment should be a
paragraph or two exploring these questions and quite personal in nature.

Each student should write another 1-2 paragraph description of a
social entrepreneur of their choosing. The writings should discuss the
personal characteristics and qualities of the individual, such as
personality, temperament, family life, work habits, etc.

Readings

No readings for next week.

Next Week:

Next week will be the final class and is a discussion of what makes a
social entrepreneur. What are some of their personal qualities? What are
some themes that have been discussed throughout the class? These questions
and many others will be explored in this class.

Week 9 - What Makes a Social Entrepreneur?

Overview:

This last class will go into the more personal side of social
entrepreneurship. Through a discussion of the qualities and personal
characteristics of successful social entrepreneurs, we hope to build a
framework from which to determine who can be a social entrepreneur and who
can't.

Logistics:

Discussion of social entrepreneurs - The discussion should
be based on last week's assignment to profile a variety of social
entrepreneurs. What are the characteristics in common? What qualities
make sense? What surprised you? Why do you think these qualities show
up? [50 min]

Discussion of student leaders - The discussion should start
based on last week's assignment and should draw parallels with the
previous discussion. What do the students have in common? How do the
characteristics match up with the qualities discussed in the previous
classes relating to the respective topics? Are you a
brainstormer,
leader,
team player,
public speaker, and/or
schmoozer? All of these questions are important and relevant because
they are all critical to a social enterprise's success [50 min]

Wrap Up - Any last words or thoughts go here. Final details
for a class trip (recommended) should be discussed at this point [10
min]

Exercises:

Last class, no exercises.

Readings

Last class, no readings.

Next Week:

Last class, no next week... :)

Week 10 Reality Check

Overview:

This last class discusses how social entrepreneurship is doing in the
broad context of things. Specifically, how is social entrepreneurship doing
in terms of entering the public's consciousness and will it break out of its
relatively small territory.

What do you think? - What does social entrepreneurship mean
to you? Is it a subject worthy of its own field or is it a particularly
interesting aspect of another field? Is there something that social
entrepreneurs should be doing that they're not? Are businesses going to
simply become more "socially entrepreneurial"? This discussion should
look at the field as a whole and analyze it from its relative position
with every other organization type that exists that competes for time,
attention, and energy [60 min].

How was the class as a whole? - This section should deal
with the class as a whole and provide constructive feedback for how the
class should be taught in the future. Should the order be changed? What
was the most valuable? What was the least valuable? Could more
exercises/readings/assignments been added or removed? Go through each
class in turn and critique itÊ[40 min]

Wrap Up - Any last words or thoughts go here. Last minute
preparation for a class trip (recommended) should go here [10 min].

Exercises:

Last class, no exercises.

Readings

Last class, no readings.

Next Week:

Last class, no next week... :)

Start a Venture

This area of the website is dedicated to the best and most updated
articles related to starting your own socially entrepreneurial venture.
While far from complete, it will continue to grow over the coming months.

Great brainstorming is one of the most powerful and one of the most
misunderstood methods in the in the innovators toolbox. It‰Ûªs a special
kind of collaboration with specific rules of behavior designed to maximize
idea generation. Check out this article to learn what those rules are and
how to lead your own brainstorming session.

For most social enterprises, regardless of whether they are for profit or
nonprofit, you will more than likely have to write a business plan. While a
bit daunting at first, a business plan is useful in that it helps
crystallize where you want the organization to be, how you will get there,
and who will be involved/necessary for that process. This article shows you
how to approach this process and develop your own business plan.

Case studies are an educational tool used to look at an organization at a
given point in time through a specific lens to evaluate a particular
decision and its results. This article will show you how to conduct one and
how it is useful for any organization.

Leadership is one of the most important aspects of any organization, yet
is also one of the most difficult terms to define. Leadership means
different things to different people, and it becomes obvious that everyone
seems to have a different definition of leadership based on the sheer number
of books written on the topic. While we can‰Ûªt give a complete summary of
all the different theories, this article details some of the greatest
qualities we have found in the best leaders.

Marketing is one of those dirty-words in today‰Ûªs society, and in many
cases, for good reason. But in its essence, marketing is about telling the
story and sharing the experience of an idea or organization. Marketing runs
in to trouble when the expectations outsize the experience and the
wording/phrasing promises more than it delivers. The key, then, is to
deliver on what you promise, and this article shows you how.

‰ÛÏIf you can‰Ûªt measure it, you can‰Ûªt manage it.‰Û? This
common piece of advice from the business world is starting to take hold in
the nonprofit/social-e sector, and for good reason. This article provides
all of the most important information you need to know to incorporate
metrics into your organization.

The guiding star for any social venture is its mission statement. Through
a well-written, concise, agreed upon mission statement, an organization can
make decisions on a day to day basis that keep the long term vision in
sight. This article will help you develop clarity and an action oriented
mission statement that provide a better sense of what your organization is
trying to do.

Negotiating is one of the most misunderstood but arguably the most
important tools to have in life. Every exchange involves some level of
negotiation, from determining what clothes to wear in the morning to
convincing a friend to see your point of view or do something with you.
Discussed in this article are some of the reasons why negotiating is
important, as well as a process for negotiating effectively.

Networking is not simply the exchange of business cards, and schmoozing
is not simply chatting up a potential boss simply to get a job. While both
terms generally receive these negative connotations, there is much more to
both and they should be considered in a much more positive light. For social
entrepreneurs, it is even more important to have the right contacts because
you need to recruit new team members, attract donors, and develop and
maintain partnerships, and this article shows you how.

Every organization needs money to operate. Nonprofits are unique in that
they usually have to convince other people that what they are doing is
worthy of their donation. Raising money is a continuous process for the
nonprofit, and there are many different ways to raise money. This article
tells how many nonprofits have continued to thrive in even the worst
economic environments.

There are many different organizational structures that can be utilized
and still be a successful social entrepreneur. Depending on what you want to
accomplish, how you want to accomplish it, and the operating environment,
you can effectively determine which organizational structure works best for
you to serve your ends. This article details the different structures to
choose from and the advantages/disadvantages associated with each.

Many organizations fall into the trap of trying to do too many things,
especially at the same time. They try to be everything to everyone, and in
the end, the organization waters down its message and leaves everyone
involved unsatisfied. This article shows you how to play your organization
to your strengths and develop key partnerships that help your organization
pursue its mission effectively.

In a poll people fear public speaking more than death, which says a lot!
While you may be among the majority who fear public speaking, it doesn‰Ûªt
have to be this way. While many have speech anxiety, this article includes
several tips and tricks to overcoming anxiety and giving a great speech or
presentation.

When running a young social enterprise that manifests itself as a
business, there may be a time when you need to raise some money to continue
your operations. Raising money, especially if you are located in a place
like Silicon Valley, is a lot easier than somewhere like South Dakota. There
are several key tips to keep in mind, and there are many tricks to the
trade, and this article tries to shed light on some of the most important
bits of information.

Building great teams is hard, but it is the key that distinguishes
between mediocre and phenomenal successes. The best teams take time to
build, but there are many good ways to develop a solid foundation to
jumpstart effective teamwork. In order to build a great team, this article
details the process of finding people, developing synergies, and creating an
awesome team.

Networking/Schmoozing

Networking is not simply the exchange of business cards, and schmoozing
is not simply chatting up a potential boss simply to get a job. While both
terms generally receive these negative connotations, there is much more to
both and they should be considered in a much more positive light. Although
difficult to accurately measure, it is generally considered that between 40%
and 60% of all jobs are offered through personal connections and are not
offered through public sources. For social entrepreneurs, it is even more
important to have the right contacts because you need to recruit new team
members, attract donors, and develop and maintain partnerships.

What is networking and why is it important?

Tool to develop new relationships: Networking is all
about getting to know people at a personal level. Relating based on common
experiences or beliefs, or simply being curious, will go a long ways to
developing new relationships with people. Being genuinely interested in
other people helps significantly in developing these new relationships.

Provide value to others: Networking is not about getting
only what you want. By being useful to other people, you can leverage your
strengths and talents towards helping other people achieve their goals. This
is important because it establishes rapport between you and that person,
which results in the ability for you to ask a favor that makes sense for
both of you in the future.

Find reason to socialize: Networking is not an end in
itself. You don't go out to simply network. You go out with a specific goal
in mind, such as meeting five new people, learning about what others are
doing, getting a feel for a particular industry, or simply to have fun. To
clarify, you should not go out and network because "it is something you
should do."

How can I begin networking?

Enjoy yourself: First things first, if you can't enjoy
yourself, others won't be able to enjoy your company. Being comfortable and
enjoyable as an individual creates the best first impression for anyone.

Don't view setbacks as permanent: So what if you said
something you shouldn't have said. Happens to the best networkers, and only
through more practice does one get better. Some people may naturally be good
at networking, but most need plenty of practice before they can schmooze
with the best.

Pay attention and listen: This becomes much easier when
you are genuinely interested in what the other individual has to say. By
listening and carefully considering what the person you are talking to has
to say, you go a long way in developing rapport.

Research those you will meet: For the most part, you can
only be hurt by what you don't know. By researching an individual, you can
get an inside scoop on some of the things they have done in the past, their
interests, and their successes. By building on that (without explicitly
stating that you did large amounts of research on the individual), you may
be able to draw out common areas of interest and develop the relationship
without fumbling through a variety of topics looking for common ground.

Ask for what you want indirectly: If you are looking for
a job, the worst thing to do is ask directly for a job from the person you
are talking to. The reason why is due to the pressure that is placed on the
other individual, especially if they don't have a job for you. By asking
instead, "Do you know of anyone who is looking for someone in XYZ field?"
This allows the individual to be helpful, and if they do have a job opening
and wish to share it, they will. If they don't have any information, they
don't feel the uncomfortable pressure to help you out.

Flattery works: Don't get me wrong, there is good
flattery and there is bad flattery. Good flattery is genuine and sincere; a
recognition of the strengths and/or accomplishments of that individual. By
acknowledging and appreciating these characteristics of the individual, you
are able to strengthen the emotional aspect of the relationship.

Following up and staying in touch.

Always follow up (the sooner the better): Following up
sooner (but not too soon) shows that you enjoyed talking with that person
and that you would like to continue having a relationship with that person.
If a person has performed some kind of favor for you, especially follow up
with a thank you card.

Keep yourself on everyone's radar: Use mass mailings,
e-mail, phone calls (even messages on voice mail), postcards, and forwarded
articles to stay in touch with people. The less personalized, the smaller
the effect, but by offering something like unique services through your
emails, you are much more likely going to remain in the memory of others.

Keep your information on friends and acquaintances organized and
up-to-date: Whether you use an online resource or index cards,
keeping the information for your contacts up to date may be one of the most
tedious things to do, but is definitely one of the most important. This is
becoming much easier with applications like Facebook and LinkedIn, but they
are still important for relationship details.

Conclusion

The art of networking is one of the hardest skills to do well, and there
are many who do it poorly. Once you become a first class schmoozer, though,
you will be able to receive and provide the benefits of a highly leveraged
network of friends and professional acquaintances. Now get out there and
meet 20 new people before next week!

Resources

Public Speaking

In a poll people fear public speaking more than death, which says a lot!
While you may be among the majority who fear public speaking, it doesn't
have to be this way. While many have speech anxiety, there are several tips
and tricks to overcoming anxiety and giving a great speech or presentation.
The most important thing to remember is that public speaking is a skill that
can be developed just like riding a bicycle.

Overcoming Speech Anxiety

Speech anxiety comes in many flavors, most of which is sweaty palms,
rapid breathing, and even stuttering. The following tips will help even the
most averse develop the confidence necessary to get going.

Take a Deep Breath: This does wonders for those who
start breathing rapidly and shallowly. Forcing yourself to breath deeply
allows you to speak slower and in a measured pace.

Imagine Yourself Speaking: If you visualize yourself
giving a great speech and practice giving said speech (especially if you can
practice where you will be giving the speech), it will help you develop
confidence in your ability to give an amazing presentation.

Practice, Practice, Practice: For every minute onstage,
it is said you should practice five to ten minutes offstage. While this may
seem like a lot for a ten minute speech, it helps you go through your speech
enough to develop the confidence to say, "I know what I'm talking about."

Bring a Bottle of Water: One of the worst things to
happen while giving a speech is to have your mouth dry up either before or
during a speech. Having a bottle of water handy should be used to provide a
nice pause as well as make your speech more understandable.

Slow Down: One of the biggest problems that many
beginning speakers encounter is they speak too quickly during their
presentation. By practicing giving your speech extra slowly, you will help
yourself speak slower when you actually give the speech.

Characteristics of a Great Speech

Tell a Story: People are inclined to listen to a story,
and if you have a good one regarding your social enterprise, use it. People
have been telling stories for centuries, and it's a natural way to describe
things, so you should use it to your advantage!

Put the Most Important Information First: Many people
tend to leave the 'Aha' moment for the end, but this is a mistake, because
if people don't get what you are saying in a relatively quick hurry, they
will stop paying attention. Especially when presenting to the digital
natives, we have a shorter attention span and thus it is very important to
grab us quickly.

Don't Get Caught Up in the Details: This is especially
relevant when giving research presentations. Too many researchers get caught
up in the details, when all an audience needs, especially a lay audience, is
enough to understand what point you are trying to convey and no more. If
people want further details, they can follow up with questions.

Use Strong Transitions: Tying points together is
sometimes as important as the points themselves. Transitions generally
happen naturally when you tell a story, but if that isn't the format
available to you, you'll have to make clear, understandable, and short
transitions from point A to point B.

Use Internal Summaries to Keep Attention: People pay the
most attention during the beginning and the end of a presentation. They
automatically pick up on cues such as "in conclusion", so if your
presentation is long, including mini conclusions that tie together a punch
of points is a great way to hammer home a general takeaway.

Make Eye Contact: Focusing on different people in the
audience while giving your speech lends a personal nature so that it appears
you are talking to the audience rather than at the audience.

Make Your Conclusion Strong: Great speeches have strong
conclusions that wrap up the whole speech succinctly. A strong conclusion,
especially one with call to action, does wonders for a presenter.

Characteristics of a Great Presentation

Highlights: Great presentations highlight what the
presenter is discussing. For example, use Steve Job's style. Good
presentations use bullet points, great presentations use headlines, and
amazing presentations use pictures. The key takeaway is that less is more.

Use Bling Sparingly: Any animations, or other whiz-bang
items, usually get repetitive, dull, and/or annoying. That is why it is
important to use them where it's important. For example, when announcing the
iPhone, having a revolving phone on the presentation is a great example of
bling.

Don't Look at Your Presentation: This is a common
mistake to make. It is important for people to stay focused on their
audience, and let the presentation speak for itself with the help of your
great speech.

Use Contrasts: Having a white background with black
text, or a black background with white text are good examples. Every
projector seems to display colors differently, therefore it is important
that use contrast to prevent people from having a hard time reading your
presentation.

Have a Backup Plan: Technology failures occur, thus
knowing your presentation backwards and forwards, especially so that you can
give your presentation without the assistance of a powerpoint, is important.
One of the worst things to happen is that you spend 25 minutes of your 50
minute speech trying to resolve technical difficulties.

Conclusion

Great speakers generally have the same anxieties as everyone else, yet it
is through years of practice and feedback that they are able to improve and
overcome their fears. Taking it one step at a time, and getting help when
necessary, can allow anyone to develop the skills of a great presenter.

Sources

Team Building

Building great teams is hard, but it is the key that distinguishes
between mediocre and phenomenal successes. The best teams take time to
build, but there are many good ways to develop a solid foundation to
jumpstart effective teamwork. In order to build a great team, we need to
start by assessing a few things about the individuals comprising a good team
as well as the environment necessary to produce a great team.

What does a great team look like?

A great team is able to operate efficiently and effectively in all
situations. Every individual knows what the big picture is, what their role
in the team is, and how to get there. Each member is able to execute to
produce results, knows who to go to for different tasks, and acts
independently as well as interdependently. There is usually little
confusion, miscommunication, or missteps that prevent results from being
achieved.

How do we build a solid team?

Assess Individual Strengths & Weaknesses - Having a well
balanced teams in terms of personality, temperament, skills, and
passions. One of the best ways to assemble a team is by having each
individual complete a free online Myers-Briggs personality profile and
then make sure that your team has a variety of personality types. Having
a team that is too introverted won't help in convincing others / selling
ideas. Make sure to have idea people that can brainstorm and executors
who can put an idea into action. When it comes to team skills, take an
inventory of what each person has done and can do well. Someone have web
skills? How can the team use these skills? The goal is to make sure you
have a well rounded team that can perform all of the different tasks
required.

Develop Clear Expectations - Know early what the team's
final product has to be. Using popular goal setting strategies, make
sure that the end result is specific, measureable, attainable,
realistic, and time-bound. For example, "We want to win" is a bad goal
because it is completely unclear. Something along the lines of "Our team
will raise $1000 over the course of one week by selling sports drinks at
all five sporting events." This can be broken down into actionable steps
that tell you where you are and where you need yet to go, which will be
based on step #1.

Start with Small Wins and Build Trust - The fundamental key
to having a great team is developing trust in that team. If you haven't
worked with individuals in the team before, start by performing small
tasks to provide small wins that build trust and credibility (such as
showing up to meetings on time). If there isn't trust in a system, there
is likely to be confusion, miscommunication, duplicated efforts, and
people who simply do not work well together. This needs to be worked on
concurrently throughout the whole process but is very important before a
team can execute effectively.

Execute and Hold People Accountable - By having clear
expectations and delegating based on strengths, teams can create results
and for holes in the system they know who to go to in order to find out
why there were missteps. One of the best bits of advice we have seen is
that teammates should be put in charge of tasks rather than be required
to complete them. What this means is that everyone is in charge of
seeing that something is getting done, and if they are having trouble
getting it done themselves, they can ask/enlist the help of other
members of the team to see that the task gets done. This is especially
useful if something unexpected comes up that prevents one team member
from being able to personally complete their task.

Teamwork = Not Letting your Teammates Fail - If anyone on
the team notices that someone is having trouble completing their task or
has been able to complete their task relatively easily, they should
automatically volunteer to help the rest of the team complete their
tasks. This is not a natural instinct, and should be vigilantly pursued
because it helps build stronger relationships, trust, and gets results.

Evaluate, Celebrate, and Repeat - Once the team has comleted its
goal, or perhaps didn't make its goal, have a group discussion that
talks about what went right, what went wrong, what could be changed to
make the results better, and what was unexpected? If the goal was met,
don't forget to celebrate! Part of being successful means rewarding
yourself and your teammates for a job well done. This feedback loop will
go through each of the steps continually and the result will be teams
that get better at working together and producing results.

What are common reasons why teams fail?

Ego: Anyone who lets their ego get in the way of
producing results will always not be a great team player. Share successes,
but take responsibility for failure.

Lack of Skills: This can be one of the silent reasons
why teams break down. It's usually one of the initial reasons why a team
stresses, which then cracks due to other factors that compound the problem.
This is why step 1 and 2 are so important. If there is a mismatch between
team strengths and the actions necessary to complete the goal, either the
team needs to have another member added or the process needed to complete
said goal needs to change.

Insecurity: If an individual is insecure, in part it can
be attributed to a lack of trust with the team or being designated a task
that doesn't match up with their skills or personality. By following the
first three steps, this can usually be avoided.

Personality: Let's face it, some personalities simply
don't get along with one another. That's why it's important to make sure the
team dynamics work and that the team can foster trust between its members.
If there is an individual who worked well but over time things changed, the
team has to decide whether or not to try to work through the difficulty or
to kick the person off the team if they are causing that many problems.

Lack of Defined Goals: Not knowing exactly what everyone
is working towards can result in ineffective or even counterproductive
efforts. Too much ambiguity leaves room for interpretations that aren't
helpful for anyone and result in a team that usually breaks down because no
one can communicate effectively and deliver results in ways that build
trust.

Conclusion

Team building is hard. There will be many missteps, setbacks, successes,
and failures. That's the nature of being on a team. The most important thing
to do is to keep an open mind, be tolerant and appreciative of individual
differences, and to always work to develop trust between teammates. Through
this growing process can the contributions of each member create results
greater than what people could produce independently. Team building should
be rewarding both as a process and because of the end result it produces,
and you'll know you have a great team when each individual's energy builds
on everyone elses.

Partnerships

Many organizations fall into the trap of trying to do too many things,
especially at the same time. They try to be everything to everyone, and in
the end, the organization waters down its message and leaves everyone
involved unsatisfied. That is why there has been many pushes in the past
decade or so to specialize and find a niche. In order to fulfill your
mission though, you may need other goods and or services that you can
provide, but do not play to your strengths. This is the perfect scenario in
which to specialize.

Why Create a Partnership

Partnerships allow your social venture to specialize in what they are
good at doing. By "outsourcing" other tasks, your organization is able to
leverage the talents, skills, and resources of another organization in a way
that furthers your mission more than if you had tried to accomplish the task
internally. On the flip side, the exact same thing should be said about the
partner organization and the value they receive from your organization. It
can not and should not be a one way street.

How do I Choose Partners

Develop a List of Things Your Organization Needs - This
list should be as comprehensive as possible and detail everything at
every stage.

Determine What Your Core/Key Strengths Are - There are
certain things that are absolutely fundamental to your organization that
should never be outsourced, and then there are things that your
organization should simply be strengths that can be leveraged. For
example, if you are a test prep company trying to reach out to low
income students, your core competency is to create a great test prep
program. Your other needs that can be outsourced are finding low income
students, locating places to train them, and even providing tutors if
your organization only focuses on the materials.

Look for Organizations with Similar Goals - By finding
organizations that also benefit from your program, you can create
partnerships that are a win-win for both parties.

Be Selective - Once your organization agrees to partner
with another organization, it is up to you to fulfill your end of the
bargain and if the other side starts having difficulty living up to
their end of the agreement, you have to find ways of working through the
difficulties. This is why it is extremely important for an organization
to be selective in its partnerships.

Develop Mutual End Goals - You should be thinking about
this in the previous two steps, but once you have chosen your partner
and are in formal discussions, it is important to start on common ground
and determine through collaboration how both organizations can be best
served.

Add Value - The old maxim of underpromise and overdeliver
fits here as well in that by creating positive experiences with the
other organization involved, you develop a strong ally that can help in
times your organization needs it or when you are looking to expand your
operations.

Evaluate and Iterate - Once a plan has been implemented and
executed, it is time to both go back to the drawing board and talk about
what worked, what didn't worked, what lessons should be considered for
next time, and what things were unexpected. At this point, both
organizations can choose to go their own way or continue their
partnership.

Conclusion

The value of partnerships comes from the synergy that develops from good
working relationships. Developing strong, strategic partnerships is a lot
like team building, and as long as the two organizations trust one another,
they have a strong base from which to operate, execute, and achieve
together. The end result is always more than what either organization could
have accomplished independently, and is exactly why you should specialize
and develop partnerships.

Leadership

Leadership is one of the most important aspects of any organization, yet
is also one of the most difficult terms to define. Leadership means
different things to different people, and it becomes obvious that everyone
seems to have a different definition of leadership based on the sheer number
of books written on the topic. While we can't give a complete summary of all
the different theories, we will detail below some of the greatest qualities
we have found in some of the greatest leaders.

Lead by Example: If you are going to talk the talk, you
better walk the walk. If not, you don't have this necessary trait that
establishes credibility and trust between yourself and your team. Anyone can
lead in a team, from the President to the janitor, and much of this ability
is dependent on whether or not people see substance in your words.

Inspire Shared Vision: Once you know what you want to
do, you need to recruit a team that is on the same wavelength. Some of the
easiest to relate examples come from sports, and we will use basketball as
an example. The general goal is to get the ball in the opponent's hoop, and
without the ability to call plays, a team captain can rarely coordinate a
complex play that allows the ball to get past the opponent team and into the
hoop. By inspiring a shared vision, you can encourage your team to
coordinate their actions towards a common goal - getting the ball in the
hoop.

Question the Status Quo: All entrepreneurs notice
something they don't like about the way things are currently done. There is
a failure in the current system that results in some form of injustice that
motivates the entrepreneur to take action. As an example, instead of simply
walking by someone who is homeless, ask why that person is homeless. This is
the inspiration that leads many to start their organization, and many
entrepreneurs continue working until the status quo is changed.

Enable others to Act: Once people believe in you through
leading by example, inspiring a shared vision, and questioning the status
quo, you are now in the position to enable and encourage others to act. Many
times people feel they need to be given permission to do amazing things, and
by all means encourage them and support them.

Encourage the Heart: Changing the world doesn't occur
overnight, and you need to be steadfast in your mission, passion, and
dedication in order to see it through to success. By standing firm, you set
the tone for your team and if you notice people becoming exhausted,
frustrated, or disenfranchised, it is your goal to step in and raise their
spirits. Most times the most difficult moments of an organization are right
at the cusp of breaking through; you need to be there to push through this
rough patch to get through to the other side.

You Can't Please Everyone: Being responsible means
sometimes stepping on some toes. Not everyone will see eye to eye, but as
long as you stick strong to your values and are resolute in your mission,
the problems will prove themselves to be short term and sticking with your
conviction will show that you say what you mean and you aren't going to
waiver when tough decisions need to be made.

Trust Your Gut: Experts often possess more data than
judgment, and elites can often lose touch with the real world. Your gut
reaction is usually your best indicator, and to question it is to put in
doubt your intuition. While it is good to question your intuition sometimes,
and not take things at face value, to incessantly doubt yourself results in
a loss of confidence that can hinder your effectiveness.

Challenge the Pros: If you have an amazing idea that
could revolutionize the way an industry or field works, don't be afraid to
take on the big boys. Many times the leaders in their field become
complacent and stop focusing on innovating, providing great customer
service, etc. This provides ample opportunity to become the new leader in
the field as long as you act quickly and without fear.

Never neglect details: The distinction between good and
great is in the details. Apple provides an amazing consumer experience
because they think about all of the details. From the product packaging to
the support for a dysfunctional product, Apple effectively focuses on all of
the details to provide a great consumer expeirence.

Act first, ask forgiveness later: You don't know what
you can get away with until you try. It's much easier to ask for forgiveness
than it is to get permission. Too often people are quick to say no to an
idea before thinking through the possibilities of yes.

Look below the surface: To find the source of a problem,
you may have to dig awhile. If a school in the middle of a city is failing,
you must be willing to look beyond teachers, books, and other obvious
things. What if the city is right in the middle of a gang turf war that
involves a lot of drugs and guns? There may be many factors that contribute
to the current problem you want to solve, and as such, you must be willing
to ask a lot of questions to get the full picture.

Leadership is situational: In some scenarios, you will
need to be the leader who charges out front. In others, you will need to be
the one who slows things down and questions the process to make sure
everything is occurring for the right reasons. There isn't a sinlge best
style, because it's all contextual. Don't fit any stereotypes, nor should
you chase the latest management fads. You can learn from them and
incorporate where they fit, but they should never become the 'right' way to
lead.

Always be optimistic: There is nothing as simple to
incorporate that produces some amazing morale boosts. Being optimistic
doesn't mean operating without caution, but rather a dead certainty that
what you are doing has value and will be worthwhile. If you allow yourself
to doubt your ability (or your team's abilities), then your team will begin
to doubt your abilities, which will almost certainly lead to the negative
outcome you were concerned with.

Pick the right people: Every organization is about
people, and as such, they are your most valuable asset. The organizations
that do the best over the longterm care about their team and making sure
their employees fit. When hiring employees, look for individuals who are
intelligent and express judgment, and most critically, a capacity to see
around corners. Also look for loyalty, integrity, a high energy drive, a
balanced ego, and the drive to get things done. All of these things combined
will create a team that is capable, passionate, and results oriented.

Fail early, fail often: If you don't fail, you aren't
taking enough risks. Risks are what allow an organization to jump to the
front of the pack, but when you act too conservatively and are afraid to
make mistakes, you will often miss important trends and key innovations that
will make your organization more efficient and effective.

Seek mentors: One of the most underappreciated yet most
rewarding ways to learn to lead is to seek a leader who inspires you as a
mentor. It can be someone local to your community or the head of a major
corporation. Set up monthly or weekly lunches with these people and pick
their brains. Smart people learn from their mistakes, wise people learn from
the mistakes of others.

Finally, a quotation from one of my favorite leaders, Colin Powell. Mr.
Powell says, "Organization doesn't really accomplish anything. Plans
don't accomplish anything, either. Theories of management don't much matter.
Endeavors succeed or fail because of the people involved. Only by attracting
the best people will you accomplish great deeds."

Business Plans

For most social enterprises, regardless of whether they are for profit or
nonprofit, you will more than likely have to write a business plan. While a
bit daunting at first, a business plan is useful in that it helps
crystallize where you want the organization to be, how you will get there,
and who will be involved/necessary for that process. Especially if you plan
to apply for grants, fundraise, or raise money, a business plan will be
critical to success in those endeavors. There are several components to a
successful business plan, and below you will find all of the relevant
information to create your own.

What are the components of a business plan?

This specifics depend a bit on whether or not your organization is for
profit or nonprofit, but they are essentially the same, and are divided into
the four components below.

Description of the Business: This section of your
business plan will describe what the problem you see is, what the current
market looks like, and how you plan on solving the problem.

Marketing: the marketing section includes greater
details on how you plan to solve the problem. From developing a competitive
analysis and marketing strategy to an operations plan and a set of metrics
to evaluate success, the marketing section will contain a lot more than how
you will advertise your social enterprise!

Finances: The finances section is important because it
helps your organization evaluate how much money you need, how much money you
have, what kind of (social) return on investment is created, and how your
organization will develop over the years.

Management: This section says who is on your team, what
these individuals do within your organization, and why they are qualified
for the team. This is arguably the most important part of a business plan
because the team is usually what makes or breaks an organization. Anyone can
develop a great idea, but without the right team to execute it, the social
enterprise will probably not be that successful.

How do I write my business plan?

Usually the best way to complete a business plan is to look at other
business plans that have been created. By following the guidelines of how
they are completed, what important information is conveyed, and the general
style of the business plan, you will be 90% of the way towards creating your
own successful business plan.

Don't rush it! - Business plans will take time because
there is a lot of information that should be accurately and
informatively conveyed. Think hard, have thorough discussions with
teammates, and continually revise in the early stages. This will create
a solid business plan that makes you think through every aspect of the
organization and includes all necessary and/or relevant information.

Read Other Business Plans - One of the best ways to become
familiar with how to write a business plan is to read a few and take
notes. Another way to accomplish this is to find someone who has already
written a business plan before and ask for their help.

Start Writing - You can split this task between teammates
or in any other way that works. As you develop your business plan, make
sure the following sections exist or are covered at least covered.

Cover Sheet - Title
of who you are and that this is your business plan. Also may contain
your slogan.

Statement of Purpose
- This will change based on what your business plan is being written
for. Business plan competition? State what you are applying for and why
in this section.

Table of Contents -
Very useful for keeping the business plan organized.

The Social Enterprise - Should include the description of the
organization, the problem, your solution, marketing analysis,
competitive analysis, operating plan, organization management, risks,
and any insurance if necessary.

The Financials -
Should include any loan applications if they exist, capital equipment
and supply list, balance sheet, breakeven analysis (not as important
with a nonprofit), income projects with profit and loss statements, a
three-five year summary, cash flow analysis, (social) return on
investment, and a section that details all assumptions that were made
for the projections. When developing the income projections, detail the
first year by months and by quarters for the rest of the years.

Supporting Documents
- This section is for any and all information that doesn't fit as nicely
into the business plan and should be included on a case by case basis.
This can include tax returns (both personal and for the organization),
personal financial statements, copy of proposed lease or purchase
agreement for building space, copy of licenses and other legal
documents, copy of resumes of all individuals involved, and copies of
letters of intent from suppliers, etc.

Get Feedback - Have teammates, family, friends, or
colleagues provide feedback for your business plan, espeically if they
have experience with business plans, and find out how to incorporate
that feedback effectively.

Review and Revise - A business plan is never complete, and
every six months to a year, the organization should look over the
business plan to see if they are on track and/or see what kind of
revisions should be made to update the business plan.

Conclusion

As you can see, business plans are quite a bit of work, but they are
definitely worth it in terms of knowing where your organization is going,
how it is going to get there, and how it is going to measure whether or not
it is getting there on time. Attached is a copy of Gumball Capital's 2008
Business Plan for one of the Business Plan Competitions we competed in.

Resources

Primary Source:

Small Business Administration. "Write a Business Plan."
Page Online. April 2009.

Brainstorming

Great brainstorming is one of the most powerful and one of the most
misunderstood methods in the in the innovators toolbox. It‰Ûªs a special
kind of collaboration with specific rules of behavior designed to maximize
idea generation. While many say they know how to brainstorm, few do it
really well. In some ways, brainstorming is like volleyball. If you know the
rules, you might be able to survive a social game at the neighborhood
picnic. But this is a far cry from the kind of volleyball you watch on TV.
No matter what level you‰Ûªre at, you can always up your game. As such,
below are some of the rules of brainstorming and how to set up your own
brainstorming session.

Rules

Defer judgment: Separating idea generation from idea
selection strengthens both activities. For now, suspend critique. Know that
you‰Ûªll have plenty of time to evaluate the ideas after the brainstorm.

Encourage wild ideas: Breakout ideas are right next to
the absurd ones, and usually result from the combination of a couple absurd
and offbeat ideas.

Build on the ideas of others: Listen and add to the flow
if ideas. This will springboard your group to places no individual can get
to on their own.

Go for volume: Best way to have a good idea is to have
lots of ideas.

One conversation at a time: Maintain momentum as a group
by saving side conversations for later.

Headline: Capture the essence quickly and move on.
Don‰Ûªt stall the group by going into a long-winded idea.

Setup

Recruit the best people: Brainstorming is all about
different bits of knowledge coming together, thus involving people with
different areas of expertise is useful. Also, watch out for groups of eight
people or more because it can stunt the flow of a group.

Set the Stage

Bring toys and props: Related and unrelated things can
help inspire connections and ideas for people.

Provide muchies: Sugar goes with new ideas

Be mindful of seating and layout: The team should not be
too far apart, should be facing each other, and should have the ability to
stand and pace or walk around.

Pick a space where there‰Ûªs lots of writing space on the walls:
Floor to ceiling whiteboards or tons of large post-it pads are ideal.

Bring lots of paper and markers: Put them on the table
and encourage everyone to use them. You get to keep all the ideas on the
whiteboards, the post-it pads and on all the paper on the table.

Review the rules and ask group to self enforce them.

Remind participants to use the paper in front of them:
If you have an idea stuck in your head, get it out on paper so you can move
on and participate in the brainstorm at hand.

Warm Up

To put people in the right mindset, set the tone with a quick warm up
activity. Do something physical (e.g. barnyard animals, jumping jacks, etc.)
or run a 2 minute funny brainstorm (e.g. how to sell more pantyhose to men,
etc.).

Ideation

Prepare yourself: Know what you want out of the
brainstorm. Prepare a draft of initial brainstorm questions that you think
will help guide the group. Have a few crazy ideas in your pocket that you
can contribute when needed.

Be mindful of the scope and specificity of the leading brainstorm
questions you use: Too broad (e.g. ‰ÛÏHow to save the world‰Û?) and
the group will wander. Too narrow (e.g. ‰ÛÏwhat color should I dye my
hair‰Û?) and there‰Ûªs no room for unexpected ideas.

Write fast & be visual: Practice writing and sketching
fast.

Use humor and be playful.

Monitor and lead the productivity of the brainstorm: Be
aware of and affect the following:

Framing ‰ÛÒ scope, specificity and scale of questions posed
and how these contribute/drive the ideation level.

Fluency ‰ÛÒ pace, tone, and overall flow of ideas

Flexibility ‰ÛÒ range and variety of ideas

Fundamentals ‰ÛÒ the basic rules

Fun ‰ÛÒ group energy level, use of humor, level of
participants‰Ûª engagement, who adds energy and when.

Ways to affect the above and reframe the brainstorm on the fly:

Pose a more specific question

Rephrase a question

Follow a thread that seems promising

Shift gears and offer a whole new question

Lob in a crazy idea

Encourage people to move around, pace and play

Say something funny

Know when to stop: Call the match when you feel you‰Ûªve
got what you need or when group runs out of steam. In general, think about
45-60 minutes for actual brainstorm time. Warm up and wrap up can take
~15-30 minutes. The actual time spent can vary according to a group‰Ûªs
level of brainstorm proficiency and endurance.

Wrap Up

Start the selection and synthesis step with the group: A
couple of narrowing tools we have found effective include:

Group review and discussion: Ask everyone to review the
boards of ideas, and talk about the specific ideas or directions they
like and why.

Offline

Continue the selection and synthesis step in a small team (1-2 people)
offline. Capture your big ideas in new sketches, one page write-ups,
storyboards, headlines, etc. Your goal is to synthesize your ideas into
concepts or concept directions that act as springboards to a final product.

Evaluation

And finally, how do you know if you‰Ûªve run a successful brainstorm?

Fluency: You leave with a lot of good ideas. A good
brainstorm can result in about 100 ideas in an hour.

Flexibility: You have a wide variety of different
concept directions hidden in the mess of ideas.

Springboards: You leave with a handful of great
springboards that you can start to prototype.

Marketing

Marketing is one of those dirty-words in today's society, and in many
cases, for good reason. But in its essence, marketing is about telling the
story and sharing the experience of an idea or organization. Marketing runs
in to trouble when the expectations outsize the experience and the
wording/phrasing promises more than it delivers. The key, then, is to
deliver on what you promise.

What are the Different Types of Marketing?

Geographic: This approach relies on being in a specific
location and getting a target demographic that is in this location. This
type of marketing works well if your target audience is someone who
congregates in a single location often, such as students at college, by
using flyers.

Distribution Channels: Similar to geographic, but
defined in a broader sense than geographic. By targeting a specific way
consumers get information/advertising, such as a newspaper, certain forms of
marketing may work better. This is definitely true for demographics where
individuals who fit the profile don't reside in a common physical location.

Electronic: Definitely the most popular, and for almost
all social enterprises started by someone born after 1980, will be the first
and most heavily used form of advertising. This form of advertising is very
different from the other two in that there are many, many different ways of
performing electronic marketing. From developing and participating in
communities to focusing on specific keywords, online marketing can vary
significantly.

Which Types Should My Organization Engage In?

Depending on what your organization does, who it is targeting, and how it
plans to accomplish its mission will determine how an organization sets up
its marketing strategy. Below is a step by step action plan for developing a
marketing strategy.

Define a Goal - What do you want out of the particular
marketing? People to donate? People to commit service hours? Be as
specific as possible.

Who is the Target Demographic - If they are students, you
may want to focus your efforts online. If it's single mothers, you may
have to look elsewhere. Do your homework and see if you can find where,
when, and how your target demographic congregates or what it shares the
most that has an advertising avenue available.

What Motivates Your Audience to Action - Be determining
what will motivate people to help you will be tremendously useful in
creating allies, getting donations, or whatever it is you are
advertising for.

Create Specific, Actionable, Measurable, and Time-Bound Steps
- Specifying all of the specifics as to who, what, when, where, and how
based on the previous three steps will give you the information and
timeline necessary to start executing and evaluating your plan.

Measure the Results - Find ways to make it easier to see
which marketing efforts work. Putting an advertisement on television
might not tell you whether or not it is a good tool, especially if you
have multiple efforts occurring at the same time, so it is important to
add something such as a redeemable coupon that allows you to track who
comes from where and how effective it is in terms of cost per desired
action.

How Do I Evaluate the Successes of My Marketing Efforts?

There are many different ways to evaluate the success or failure of a
program, but the most important thing is that your organization
takes the time to measure something to see whether or not it is effective.
Attaching something unique to each marketing plan will allow you to track
effectiveness, and can help spur people into action even quicker depending
on the incentive system used. Usually, a simple return on investment (ROI)
calculation is necessary. Take the result benefit (dollars donated) divided
by total cost (dollars spent) and this provides you with relative
effectiveness. Say the end result is something like 1.4. What this means is
that for every $1.00 put into the advertising program, there is $1.40
donated to your organization. Not a bad ROI, but it's only by planning and
integrating a plan for measuring results that your organization would be
able to analyze impact in the first place.

Conclusion

Marketing is a double-edged sword that keeps getting sharper. Because of
the increasing ease of communication, especially in larger and larger
audiences, it becomes extremely important that your marketing is in line
with what your product/service delivers. Any deviance will result in an
immediate cut in your credibility. In a global economy that is becoming more
and more ruled by recommendations, it is important that your organization
practices what it preaches so that people will be raving about your great
solution rather than bad-mouthing it.

Nonprofit Fundraising

Every organization needs money to operate. Nonprofits are unique in that
they usually have to convince other people that what they are doing is
worthy of their donation. Raising money is a continuous process for the
nonprofit, and there are many different ways to raise money. The Bridgespan
group, in an article posted on the Stanford Social Innovation Review,
identified 10 different models for fundraising utilized by large successful
nonprofits. By no means is this an exhaustive list or the only way nonprofit
social ventures have been able to thrive, but it provides some of the
time-tested and battle hardened methods for helping keep an organziation
thriving in even the most difficult times.

Quick Overview

The models have been categorized by Bridgespan according to their source
of funding. The five themes are as follows: many smaller individual
donations, large donations by few individuals or foundations, the
government, corporations, and finally a mix of funders. Within many of these
there are subcategories, which will be detailed below and combined they
create the 10 models described above.

So, what are these ten methods?

Heartfelt Connector - Kiva is the perfect example of a
Heartfelt Connector in that they try to build relationships (visible or
invisible) between donors and beneficiaries. The strong connection,
which keeps people coming back to fund more entrepreneurs, allows Kiva
to grow and thrive.

Beneficiary Builder - Private universities are the best
examples in that they charge for their services (an education/degree),
but the costs are nowhere near covered by the service charges. As such,
they rely heavily on previous beneficiaries donating in order to provide
their products and/or services.

Member Motivator - The organizations that utilize this
model provide something that immediately benefits individual donors. For
example, the National Wild Turkey Federation (NWTF) expands wild turkey
habitats to protect and promote wild turkey hunting. It receives its
funds through membership fees, merchandise, banquets, and other small
forms of raising funds. The key is that individuals see and feel the
personal benefit they receive from the organization, even though the
organization serves a cause larger than the individual stakeholder.

Big Better - This model is exactly as it sounds. It relies
on one or a couple of large individual donations. While there are few
organizations that utilize this model, a common example is found when an
individual personally provides the money for the organization and heads
the efforts to pursue its mission.

Public Provider - BRIDGE Housing is an example of a Public
Provider in that they receive funding from the government to provide a
service that the government would normally be obligated to provide.
BRIDGE provides low income housing in Northern California, and has grown
to the point that they also search for additional funding sources.

Policy Innovator - This funding model relies generally on
an organization providing a more effective and/or less costly than a
traditional government program. The reason why they differ from Public
Provider is that they are not clearly compatible with existing
government funding programs, and therefore need to use solid evidence to
receive support for their program.

Beneficiary Broker - Many nonprofits compete for funding in
the Beneficiary Broker model because their goal is to provide a given
service more efficiently and/or effectively to a variety of
beneficiaries who are free to choose which organization they receive
help from. This allows nonprofits to compete for government dollars, as
they will have to prove they are the best option for beneficiaries to
receive and utilize government resources.

Resource Recycler - Your local food bank is a great example
of a Resource Recycler in that they utilize individual and/or business
donations of usually products to individuals who could not normally
afford them.

Market Maker - In markets that would be unethical to
monetize, such as organ donation, Market Makers fill the gap. These
nonprofits are able to provide services that would be scandalous or
unlawful in a for profit setting, even though there is a great need for
the services.

Local Nationalizer - Your very own Gumball Capital
generally acts as a Local Nationalizer. Our ability to raise money stems
mostly from activities occurring at a local scale that trickles up and
helps out at a national level. By focusing on providing great value at a
local level, we are able to empower individuals to create big change in
their communities and even nationally.

Which one do I choose?

Your choice for a model will depend largely on the type of service you
provide, and may not appear immediately. If the first model you try doesn't
work, try a different model. Maybe you can combine a couple at the same time
and see which one works best. As long as you keep an open mind you should be
able to stumble across a model that works for you, and it may not even be
one of the models suggested above!

Conclusion

Even though this list isn't exhaustive, it does give quite a few examples
of successful models. What wasn't discussed above, and should maybe be
considered, is the idea of offering a product or service that provides
revenue. The most important thing is to be creative, think about what needs
you are trying to solve, and what will help you pursue your mission. By
focusing on fulfilling the mission first and foremost, a fundraising model
may fall into your lap, and if worse comes to worst, you can always reach
out to local nonprofit executives for advice and help in developing a
fundraising strategy.

Sources

Raising Money

When running a young social enterprise that manifests itself as a
business, there may be a time when you need to raise some money to continue
your operations. Raising money, especially if you are located in a place
like Silicon Valley, is a lot easier than somewhere like South Dakota. There
are several key tips to keep in mind, and there are many tricks to the
trade, but below are the most important bits of information.

What type of money can I raise?

Friends and Family: If you are just trying to get your
idea off the ground, don't need a lot of money, and is something you would
like to get your family involved with, this may be the easiest route to go.
It is very important to note, though, that there is not much that is easier
to break relationships in a family than borrowing money. While they are
sometimes more forgiving than the bank, it is important that you treat money
received from family and friends in a very professional and trustworthy
manner.

Bank: For some organizations, the bank will be willing
to loan money, but it is very hesitant to do so. This is especially true if
there isn't some form of physical item that can secure the loan in case the
business fails. By having a physical item such as a house or car, the bank
can collect on the loan by seizing and selling the item.

Angel Investor: Angel investors are great for businesses
that require about $1 million in capital or less. These individuals usually
have business experience themselves, know other angel investors who have
valuable skills, and a network of contacts who could help grow and/or
develop your business.

Venture Capitalist: Venture Capitalists are for later
stage organizations or for those who need large sums of money to get
started. VC's usually don't get involved with startups until they need more
than $1 million. Companies like Facebook fit this profile, for example.

How do I raise money?

Most of the information below for raising money have been learned from
and apply to angels and venture capitals, but they can also be used for
friends and family as well as banks. The best way to handle the latter two
is to choose the elements that make sense and fit the audience.

Create your Personal/Team Pitch - The single most important
thing investors look for is great people. You should show that you are
one such great person and that you can lead a company to success. There
are ten characteristics that are important to show somehow in your
presentation, and they are: integrity, passion, experience, domain
expertise, skills, leadership, commitment, vision, realism, and
coachability (this last one is for angels and venture capitalists).

Create a Great Presentation - Any powerpoint should be very
short and concise. The best example is that of Steve Jobs, and any web
search for videos of presentations will be helpful. Short bullet points
are good, simple headlines are better, and only images are the best. The
presentation format should be as follows: company logo, business
overview, management team, market, product, business model, strategic
relationships, competition, barriers to entry, financial overview, use
of proceeds, and finally capital and valuation.

Find Investors That Fit - One commonly overlooked factor is
finding investors who are interested or care about the same industry
that your organization is operating in. The investor should act as a
partner because they have a vested interest in seeing your organization
succeed. Having someone with domain knowledge would be extremely
valuable.

Giving the Pitch - Your pitch should start like a rocket
and get their attention. Have a very solid upward path and then knock
them out of the park when you conclude. Here are some tips to give a
great presentation:

Always Use Presenter Mode
- If you are using the Mac presentation software, Keynote, make sure to
use the 'presenter mode.' The reason is that it gives you important
information such as how long you have been talking, what your next slide
is, and any notes you have stored for the current slide. There are also
many programs online that can be downloaded to fit this purpose if you
aren't using Keynote.

Always Use a Remote
Control - You want to be making eye contact with the investors at
all time, not fiddling with and looking at your computer.

Handouts Are NOT the Presentation - Any handouts you provide to the
investors should be something they can look at for a general overview
and then take notes on. If it is the presentation, they will simply read
it and not listen to you.

Don't Read Your
Presentation - This should be obvious. Any teacher who simply
reads from the book is completely boring, but someone who adds value to
the key points will grab your attention.

Never Ever Look at the
Screen - This is a big rule that is often violated. There should
be no reason why you should look at your screen as you should be focused
on the investors.

Rinse and Repeat - If the first investor you talk to
doesn't bite, don't worry. Many succesful companies got started only
after giving their pitch to 20+ investors before one finally agreed to
invest. Try and learn something from each pitch and incorporate it into
the next.

Conclusion

While raising money is one of the harder things to do in an organization,
it is also obviously one of the most important things to do. One final bit
of advice to keep in mind is that your organization should be raising money
when it doesn't need it. The reason being is that when your organization is
looking good and being viewed as a success, investors want to have a part of
that success. On the flip side, if you need money, investors will also know
this is a good time to lend money on even better terms for themselves.
Overall, do what fits with your organizations, and try to create as many
synergies as possible to make raising money advantageous in many ways.

Sources

Primary Source:

Rose, David. TED Talks. "10 Things to Know Before You Pitch a VC for
Money."
Page Online. April 2009.

Organization Structures

There are many different organizational structures that can be utilized
and still be a successful social entrepreneur. Depending on what you want to
accomplish, how you want to accomplish it, and the operating environment,
you can effectively determine which organizational structure works best for
you to serve your ends. This article details the different structures to
choose from and the advantages/disadvantages associated with each.

What are the different types?

Nonprofit: This structure, in its most common form as a
501(c)3, is the most popular and for good reason. Nonprofits are mission
driven, as are all social ventures, and have a nice advantage of being tax
deductible. There are other types of nonprofits with other advantages, but
for the purposes of a social entrepreneur, the nonprofit is the most
relevant. The legal difference between a nonprofit and a for profit is a
non-distribution constraint, which means that any profits an organization
makes cannot be transferred to the shareholders. Another reason why this
model is very popular is because there is a general understanding that the
nonprofit structure is necessary to fulfill needs that cannot be served by
traditional market mechanisms. While this is generally true, the most
innovative social entrepreneurs find ways to make in some sort of revenue
stream, but by no means is it a requirement.

For profit: This organization type comes in many
flavors, including traditional C corporations (ATT), S corporations (has
less than 100 shareholders), Limited Liability Company (LLC) (a newer and
fast growing structure), partnerships (think law firms), and sole
proprietorships (Bob's Machine Shop), and vary mostly on how they are taxed
and who can participate. Most of these structures aren't very popular and
relevant to social entrepreneurs, but the one that we will talk about
because of it's popularity and flexibility is the LLC. The reason it is
popular is due to it's ability to flow through taxes to individual
shareholders (C corporations and S corporations tax at both corporate and
individual level), and the ability to customize Articles of Incorporation to
include things like a social mission. If your organization is likely to need
investment capital from Angel Investors or Venture Capitalists, is likely to
have multiple revenue streams, or wants to make investments itself, it will
benefit most from a for profit structure like an LLC. The final point, are
the two major disadvantages in for profit structures. The first is that they
are not tax deductible, thus they have to pay taxes in multiple ways. The
second, and most important, is that if there ever comes a time when the
organization must choose between profits and mission, the profit will nearly
always win.

Hybrid: All right, this is a little like cheating, but
there are many different social entrepreneurs trying to utilize innovative
structures to meet their ends. Some utilize a for profit / nonprofit duality
that allows the benefits of both for profit and nonprofit structures. Other
organizations, like
B Corp, are trying to take away the disadvantages of having the for
profit model - namely the conflict between profit and mission - by baking
the social mission right into the articles of incorporation. This is what
LLC's can do, but for an already existing organization, they will need to
reincorporate as something else in order to protect the mission. The reason
why a separate legal structure is being sought is to bring to national
attention the need for businesses that are socially and environmentally
responsible as well as profitable. The second reason, and the more important
reason, is that there are certain standards that must be met to attain the B
Corporation status, and having this status means there is an easy way for
consumers to know whether or not businesses are proven to be fulfilling a
social mission. From a nonprofit perspective, there are a number of
nonprofits that operate a business inside of the nonprofit and utilizes the
profits to subsidize the services they provide to underserved stakeholders.
For example, Aravind Eyecare charges patients who can pay for faster service
with better rooms and utilizes any profits to provide free service, which is
slower and the rooms are dingier.

How should I make my decision?

Assess similar organizations - Are the organizations in the
sphere you are trying to serve generally for profit or nonprofit? Why?
Once you know the answer, then you can determine whether or not you
should adopt a similar model or choose something else.

Which benefits are most important to your organization? -
Do you need tax deductibility? Do you need organizations to invest in
your growth? Do you need instant credibility for your products that your
customers can see?

What resources are at your disposal - Do you have access
and a large network of contacts in the for profit world? Do you have a
lot of experience sitting on a board of directors, or studying why
people give? Use your expertise to your advantage instead of relearning
how other structures work.

What is society's attitude toward your structure choice? -
While similar to #1, it is very important that the structure you choose
will not get in the way of fulfilling your mission. For example, if
you are operating in the education realm and need access to students, be
very careful about choosing a for profit business model as you could
instantly lose access to students because administrators / school
counselors could mistrust your intentions.

Conclusion

There are many different choices a person can make in regards to an
organizational structure. It is important to move quickly, but not too
quickly and make a bad decision that ultimately causes more trouble in the
end. Many times, if your organization is small enough, you can operate
without incorporating and test out the market's reaction to determine which
structure makes the most sense. Do people offer to donate to your cause? Are
they asking how much you charge for a given service? This can help you find
what makes sense and then put everything in order to get your organization
up and running. Best of luck, and get moving!

Case Studies

Case studies are an educational tool used to look at an organization at a
given point in time through a specific lens to evaluate a particular
decision and its results. They try to accomplish a lot by providing a real
world study to the academic realm and can be useful from a variety of
perspectives. A case study is usually best accomplished in groups, although
an individual can read through case studies to get a feel for how
organizations solve certain problems.

Why Are Case Studies Useful?

Real World: Case studies bring the successes and
failures of the real world to the academic world to be probed for greater
understanding. This is advantageous because it provides feedback on
theoretical concepts, but the disadvantage is that they can miss relevant
externalities.

Discover Important Factors: A case study can be used to
highlight the importance of a specific concept or principle, both from the
success or failure of its implementation.

Exposure and Context: As students prepare for the real
world, usually in the sense of going to business school, case studies can
provide exposure and context to issues they might otherwise not face. This
can be useful in developing problem solving skills in future scenarios.

Students Can Learn from One Another: Another important
value of working through a case study as a group is to receive feedback and
understand an issue from other students experiences. If a student from one
industry saw that a concept worked while in another industry it didn't work,
that may be useful to know and understand.

How Do I Perform a Case Study?

Questions to Study: Each case study is trying to analyze
a particular question, such as "How did the mission of an organization
change successfully?", and it is important to understand and discuss this
question as a group or individually. Did the case study do it well? Was it
clear? Concise?

Assumptions: Every case study makes assumptions, even
though it tries to reduce them as much as possible, thus it is important to
identify each of these assumptions and analyze how they affect both the
situation and the results.

Analyze Data: In many case studies, numbers could be
incorporated, and it is important to understand why those numbers were used,
how they support the case study's argument, and any problems that may exist
within the numbers. Do the numbers have hidden assumptions? Could the data
be interpreted differently?

Is it Logical?: Do the assumptions lead to logical
conclusions? Are there any failures in how the case makes an argument? Are
there hidden premises in the context that allow the solution to work in one
scenario but not another?

Criteria for Interpretation: What are the criteria
involved for understanding this case study? How can it be compared to both
other case studies or theoretical principles? Does it answer the questions
it studies? Should it answer the questions it studies?

Conclusion

Case studies are very useful in that they can provide a student a "test
drive" of real world problem solving and results. While they have many
advantages, it is important to understand and appreciate their limitations.
There are certainly questions of reliability, validity, and generalizability
to the claims made within a case study, and it is only through critical
analysis that one can develop value from a case study. Finally, there are
many online resources for case studies and their analysis, and the Stanford
Business School as well as the Harvard Business School are great examples of
where to find case studies, and the Social Enterprise Knowledge Network is a
great example of social enterprise case studies.

Sources

Metrics & Analytical Methods

"If you can't measure it, you can't manage it." This common
piece of advice from the business world is starting to take hold in the
nonprofit/social-e sector, and for good reason. Many nonprofits in the past
have existed without knowing or sometimes even trying to quantify the impact
they create through their programs. The tide is turning, though, because
more foundations and other sources of funding are developing internal
metrics for evaluating their investments. This, in turn, is being
transferred to the social-e organization and below is the most important
information you need to know to understand different forms of analysis as
well as developing your own.

Why are metrics so important?

Useful tool for management: Metrics are important
because they help management find out which areas of an organization are
inefficient, where the organization is facing roadblocks, and where
information is not getting to the right people at the right time. As
organizations become more dependent on effective coordination between teams
of people, the barrier to accessing information should become much smaller
and more transparent. While it takes time to develop the internal tools
necessary to effectively quantify and qualify the data, the resulting
benefit will pay off in numerous ways.

Enable donors to understand relative effectiveness: As
competition heats up between organizations for donors limited dollars,
having objective data, especially for organizations that operate within the
same field, will allow donors to put their money in the hands of
organizations that will create the most benefit. Even though it is currently
difficult to compare the effectiveness of organizations operating in
different fields, such as child literacy and women's rights, having the
ability to compare between the same field (child literacy) is relatively
easy and gives donors more information.

Increase overall donor confidence thus increasing the amount of
total giving: When donors can see how their money is being spent
and what the end result of this donation can be, donors may be more willing
to give more on effective programs. There are many skeptics to this proposal
though, many of which are highlighted below:

Donors do not see a need for performance measurement.

Donors do not have time for performance measurement.

Donors do not have confidence in performance measurement.

Donors do not want to see nonprofit resources dedicated to
performance management.

Donors look to institutional funders to engage in performance
measurement on their behalf.

What are different methods of calculating effectiveness?

Cost-Effectiveness Analysis: The purpose of this form of
analysis is to create simple, natural units of measuring impact as a ratio
of cost, which can then be compared when appropriate. Cost per child cured
of malaria is an example of this method. When developing the metrics, be
sure to break out all costs and benefits by stakeholder (identify who pays
and who benefits) and over what timeframe. [1][2]

Cost-Benefit Analysis: This form of analysis monetizes
the benefits and costs associated with a program and then compares them to
one another to see which is greater. The result is the ability to compare
any program against any other program and see which one maximizes value
monetarily. For example, if it costs the government a total of $10,000 per
student over the course of four years to improve their grades and get them
into a 4-year college, and the student then earns a total of $900,000 more
over the course of his/her lifetime (and guesstimating the government makes
an extra $180,000 in taxes at 20%) the cost-benefit analysis comes out to
$180,000 / $10,000 = $18 in tax revenue per $1 invested. [1][2]

REDF SROI: REDF is a nonprofit philanthropic social
venture fund founded in 1997 in San Francisco, CA, and calculates social
return on investment (SROI) by developing a set of metrics that quantify and
monetize social return. These returns are then viewed in the context of
outcomes that are difficult or impossible to monetize or quantify. This form
of measurement draws heavily on cost-benefit analysis and results in total
benefits accrued to the public sector, not individual stakeholders, and has
thus been less popular with funders because of the lack of detail. [3][4][5]

Robin Hood Foundation Benefit-Cost Ratio: Robin Hood is
a nonprofit founded in 1988 to target poverty in New York City (NYC) with
the goal of fighting poverty in four general areas: Jobs & Economic
Security; Education; Early Childhood & Youth; and Survival. The purpose is
to provide a monetary value of the projected and actual outputs of a program
and to use these values to compare the effectiveness of programs within its
portfolio. Draws heavily on the cost-benefit analysis. [6][7][8][9]

Acumen Fund BACO Ratio: The Acumen Fund is a $50 million
nonprofit global venture fund founded in 2001 in New York City with the goal
of receiving a payback or exit within five to seven years. To determine the
estimated social output, they compare the ROI to the Best Available
Charitable Option (BACO) ratio. The driver of this methodology is that any
ROI, even if it is only the principal (no interest), allows the fund to
reinvest that capital in another opportunity down the road. [10][11]

Hewlett Foundation Expected Return: The William and
Flora Hewlett Foundation was founded in 1966 to solve social and
environmental problems at home and around the world. The expected return
provides a systematic, consistent, quantitative process for evaluating
potential giving activities, and is based heavily on cost-effectivness
analysis and cost-benefit analysis. [12][13][14]

Center for High Impact Philanthropy Cost per Impact: The
Center for High Impact Philanthropy (CHIP) was established in 2006 by alumni
of The Wharton School of the University of Pennsylvania, who were frustrated
by the difficulty of measuring and maximizing the impact of their charitable
gifts. The goal is to provide tools and information that allows
philanthropists will have the greatest impact by showing the costs incurred
for the provided benefit. Draws on the cost-effectiveness analysis. [15][16]

Foundation Investment Bubble Chart: This form of
analysis is more of a visualization tool that plots the quantifiable impact
on the x-axis, the percentage of implementation on the y-axis, and the
relative size of a foundation's grant in a given field. This results in an
easy comparison of the performance of organizations across a portfolio and
can have different variables for the x-axis, y-axis and bubble relativeness
for flexible data display. [17][18][19]

How can I implement metrics into my organization?

Start with your mission - Are you trying to increase access
to retroviral drugs for those who have aids? Are you trying to improve
student's SAT scores? Be sure you have a great mission that is
quantifiable, time bound, and action oriented.

Develop metrics and a timeline- Once you know what you're
trying to do, you can now develop ways to measure your progress. If you
are trying to improve student's SAT scores, first start by having
students take a practice or official SAT to develop a baseline. From
there, keep track of the number of teaching sessions, total costs
incurred for those sessions, length of teaching training and teaching
sessions, and finally the increase in SAT score based on a final
official test. Put this expected progress on a timeline of expected
goals and

Quantify Intangibles - Let us say you have a goal of
"increasing teamwork" - something that is hard to quantify numerically.
To measure these intangibles, it is useful to ask the question, "What
would someone with this quality do?" This results in a concrete result,
which can then be measured. To continue with the example, an increase in
teamwork would result in fewer projects failing or falling off-track.
Now you can quantify the number of times a project fails or is late and
systematically work towards the goal.

Evaluate - Any system for improvement must itself be
improved. Asking those who are creating the most results should be asked
how they have been creating their successes and then building upon these
lessons and sharing them with the rest of the organization.

Reward Performance - Find out who has created the most
progress towards these goals and reward them appropriately. Also, don't
hesitate to take the opportunity to have these individuals share the
lessons of their success with the rest of the organization and utilize
them as a teacher for the organization. And if the goal is reached on
time, take some time to celebrate and reward everyone accordingly!

Conclusion

The development and analysis of metrics is a relatively new and exciting
field for nonprofits and social enterprises. While somewhat intimidating and
daunting for those with no experience in the area, the best way to start is
by asking the question, "If I was considering donating in the cause, what
information would I want to know to make sure my money is being put to good
use?" Beginning with the end in mind makes the intermediate steps more
tangible and manageable. Finally, don't worry about not getting it right the
first time! Developing and analyzing the impact of your organization evolves
over time but is something that should always be in the back of your mind.

Mission Statement

The guiding star for any social venture is its mission statement. Through
a well-written, concise, agreed upon mission statement, an organization can
make decisions on a day to day basis that keep the long term vision in
sight. Too many mission statements are very broad, extremely generic, and
hardly actionable. A new trend that is developing in writing mission
statements is adding more clarity and action oriented words that provide a
better sense of what in specific an organization is trying to do.

What Makes a Good Mission Statement?

Concise: Good mission statements state exactly what an
organization believes, no more and no less. It is as simple as possible and
no simpler.

Action Oriented: Knowing what an organization is
intending to do, and making sure that said actions are measurable and can be
accounted for. It doesn't need to be extremely specific, as implementation
strategies tend to change, but something that says the end goal in
actionable steps.

Attainable: While the end goal could be to "eliminate
poverty", that in itself is too broad and may take more than what any one
organization can do, so making it something that can be achieved by the
organization is paramount. Changing the previous example to "eliminate
poverty in the Bronx by 2020" is much better.

Time Bound: Creating a deadline allows organizations to
adjust their expectations so that they are more realistic in setting goals,
as well as being able to calculate how they are going to achieve those goals
on a week by week or quarter by quarter basis.

Value Driven: Every social venture is driven by some
system of values that rectifies a wrong it sees in the world. As such, being
able to distill which values are most important and how they related to the
end goal is very important.

Result Oriented: What will the world look like once
you've achieved your mission? This is the reason why your organization
exists, and how you intent to achieve it is the other four characteristics
mentioned above.

How Do I Make a Good Mission Statement?

Welcome All Perspectives - Everyone should believe in and
feel the mission statement. By allowing everyone on the team to take
part, everyone feels some ownership and connection to the mission.

Brainstorm Where The Organization Will Be X Years Out -
This will show where the common ground is between individuals and allows
for a great starting point in determining which direction people want to
see the social venture taken.

Don't Rush The Process - Letting the mission develop over
time is good, especially in a rapidly growing organization. While one
does want to be wary of mission drift and taking on too many things at
once, spending enough time early on will ensure a good fit with the
mission and how everyone is working to achieve it.

Be Concise - Write only what you need and make sure the
mission statement, especially in its rough draft, doesn't get too long.
The idea of a mission statement is to be short enough to be easily
remembered and strong enough to inspire.

Review Often - By reviewing the mission statement often,
individuals can remain connected to it, which will ensure that everyday
tasks are continually building towards the value driven end.

Conclusion

Writing and reviewing a mission statement can and should be a very
rewarding expererience for every social venture. By detailing what the
organization wants to accomplish, how it will achieve the goal, and an idea
of what actions need to be taken to get to the end result, a social
enterprise sets itself up so that every individual in the organization
should be both inspired and motivated by the mission statement and work
towards that mission each and every day.

Negotiating

Negotiating is one of the most misunderstood but arguably the most
important tools to have in life. Every exchange involves some level of
negotiation, from determining what clothes to wear in the morning to
convincing a friend to see your point of view or do something with you.
Seeings it's importance to everyday life, it may be hard to understand why
it isn't considered a much more important tool for communication, but the
truth is you don't have to be a great negotiator to get through day to day
life. Being good enough works for most, and because few have seen a great
negotiator in action, fewer still understand what can be gained from great
negotiating. Discussed below are some of the reasons why negotiating is
important, as well as a process for negotiating effectively. Finally, a pdf
is attached that provides a game for learning the benefits of great
negotiation.

Why is negotiation so important?

Short term gain results in long term losses: Too often
people view negotiations as a one-time process. This mindset encourages
people to create the best solution for themselves without considering the
implications for the other side. As such, because people don't believe they
will be working with the group again, they create scenarios that when they
do negotiate in the future (as often happens), they no longer can negotiate
with goodwill intact. For example, some people will make deals look better
than they are in order to maximize profit during this deal, and the
destruction of credibility will hinder the creation of a good deal in the
next negotiation.

Tensions between self interest and group interest: This
is a very real and very problematic situation for many. In the short term,
self interest wants to take over, but in the long term, group interests is
always the way to go because of the credibility, trust, and goodwill that
develops.

Trust is hard to build but easy to break: Because of
this truth, the maxim of always tell the truth is recommended. Although the
truth can hurt you in the short term, in the eyes of others you will be
regarded as courageous, honest, and trustworthy, which will encourage people
to work with you in the future. They know you won't try to hide things,
which results in mutual respect and improve your communication and
effectiveness. This, though, can be taken away in a heartbeat, so guard your
reputation fiercely.

Reciprocity is important for building a relationship:
Thinking win-win is the ideal, and following through or creating those
scenarios allows a relationship to develop. By doing others favors, and
asking for favors in return, trust is slowly being built. With each positive
interaction, a relationship develops with goodwill that can be used when
conflicts or problems can (and usually will) develop.

Positive coalitions act as agents for change: By
developing strong, trusting, and positive relationships with others, you can
coordinate efforts to create mutually beneficial results that would be
impossible to achieve by acting independently. No man is an island, nor is
any organization. As such, develop great relationships with other
organizations to create long lasting and high impact change.

What is a successful negotiation process?

Come up with any "better than alternatives" - This is for
understanding where the other side is coming from. How strong your
position can be in the negotiation depends on the alternatives that the
other party has. If they have great alternatives, you may have to tip
the scale in favor of that organization to 'woo' them. On the other
hand, if the other organization has an alternative of declaring
bankruptcy, for example, you are operating from a position of strength
and can dictate more of how the exchange will occur. While you
definitely don't want to take advantage of this situation (see reasons
above), it allows you to effectively argue for a certain outcome.

Have something that satisfies all parties interests - The
number one way for people to say 'yes' is to know that they are getting
what they want from the transaction. If anyone is left out, or feels
left out, they could sabotage the whole deal which will put you back at
square one. As such, offer to include all who may be affected by your
deal, even if they may decline because that is better than having a deal
implode because of the outside party.

No waste, best of many options - This is a lot like Econ
101 in that by leaving certain things on the table, they are being put
to no good use and are a waste of resources. By working through all the
details, you can maximize the benefits for all involved.

Use objective criteria - Many decisions and arguments are
based on different sets of data gathered, and the easiest way to
undermine your position is to use biased data. Finding statistics from a
trusted third party who can't 'fudge' the numbers one way or another
makes your arguments that much more compelling.

Well-planned commitment - Not only is making a decision
important, but you also have to follow through on your commitments. By
outlining what each party will do in the beginning and sticking to that
commitment throughout will develop mutual trust and make interactions in
the future much easier.

Good, two-way communication - Not only what but how people
say things is very important to reaching an agreement. Having good
communication, where one side isn't dominating the process, results in
the feeling of a level playing field that promotes trust and respect
between the parties, no matter what discrepancies exist.

Process improves relationship - The goal of any negotiation
is two fold: to get what you want from the transaction and to build a
relationship. By following the steps previously highlighted, you are
well on your way to improving the relationship, which will bring much
better deals and make working together more effective and enjoyable.

Conclusion

Negotiation isn't something someone either has or doesn't have, it is
something that takes time and dedication to develop. While some may have a
natural propensity for it, anyone can become at least competent at creating
great deals. The easiest way to learn negotiation is through practice, and
lots of it! Appended below is a worksheet that details a negotiation game
anyone can play, and another easy way to work on negotiation skills is to
play board games with lots of tabletalk. Good luck and have fun!